KUCHING: Affin Group recorded a Profit Before Tax (PBT) of RM701.0 million for the financial year ended December 31, 2024 (FY2024), marking a 35.3 per cent increase from RM518.3 million in the previous year.
This shows that the Group’s total loans and financing grew by 8.1 per cent year-on-year (YoY) to RM72.0 billion, while total assets stood at RM111.8 billion as of the end of the financial year.
Affin Bank Berhad President and Group Chief Executive Officer Datuk Wan Razly Abdullah attributed the positive performance to the Group’s ongoing strategic initiatives under the AFFIN Axelerate 2028 (AX28) Plan which is built on three pillars namely Unrivalled Customer Service, Digital Leadership, and Responsible Banking with Impact.
In the fourth quarter of 2024, he noted that Affin Group implemented an Early Retirement Scheme amounting to RM48.5 million.
“Excluding this one-off cost, the Group’s Business-as-Usual PBT would have been RM749.5 million, reflecting a 44.6 per cent YoY increase.
“The strong profit generation will be reinvested into growing the balance sheet and enhancing the Group’s digital capabilities,” he said.
He said that Affin’s efforts to improve Net Interest Margin (NIM) are showing early results, with CASA breaching its 30 per cent target.
“This is a significant milestone in strengthening our funding base. At the same time, we are advancing our digital transformation journey with the introduction of our new Digital Core and Mobile App, launching in Q1 2025, which will catapult the Group’s growth in 2025.
“We are strengthening AFFIN’s resilience and growth by expanding our loan portfolio, reinforcing our asset base, and driving sustainable profitability,” he said.
In a statement, it said that Affin Group’s net interest income rose to RM826.4 million, a 5.6 per cent increase from RM782.9 million in the previous year.
Non-interest income also saw a 7.4 per cent growth, reaching RM652.2 million.
Meanwhile, it noted that Affin Islamic Bank Berhad recorded a PBT of RM323.3 million, reflecting a modest 1.8 per cent increase from the prior year.
“The Group’s total loans, advances, and financing registered an 8.1 per cent growth, largely driven by a 10.8 per cent increase in the Community Banking segment.
“Housing loans grew by 8.4 per cent, while auto finance loans recorded a 6.7 per cent rise. Customer deposits increased by 4.1 per cent YoY to RM73.7 billion, with CASA standing at RM22.4 billion and a CASA ratio of 30.4 per cent,” it said.
It stated that Affin Group’s capital adequacy remains strong, with a Total Capital Ratio of 17.06 per cent, a Tier 1 Capital Ratio of 14.64 per cent, and a Common Equity Tier 1 (CET1) Capital Ratio of 13.22 per cent. Liquidity Coverage Ratio stood at 165.18 per cent, well above the regulatory requirement of 100 percent.
“To reward shareholders on our growth journey, we are proposing a Bonus Issue of one new share for every 18 existing shares held.
“We have received a strong demand for our shares, which remain tightly held. The Bonus Issue will enable more shareholders to participate in our value creation.
“This initiative reflects our confidence and commitment to unrivalled service and digital transformation whilst signaling strong future growth prospects.”
